Key points:
- Supply@ME Capital shares plunged 30% after its chairman resigned.
- However, the drastic move seems like an overreaction, raising questions.
- For example, will SYME’s business eventually become successful?
The Supply@Me Capital PLC (LON: SYME) share price plunged 30% after its non-executive chairman James Coyle abruptly resigned.
The inventory monetisation company said that Coyle resigned for personal reasons to focus on his other non-executive roles, given the expected high workload at SYME in future as the company rolls out its services later this year.
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Investors’ extremely negative reaction to the news tells a story of distrust towards the inventory funding company largely triggered by its many missed deadlines.
SYME has no shortage of detractors who have cast doubt on its business model, with many predicting its demise soon. Nevertheless, the company keeps moving, making new alliances each day to build a foundation for its future success.
Still, given that SYME is a penny stock company with a yet unproven business model, there is a significant chance that it could go bust at any time, which is a risk most investors in the AIM market are aware of and are comfortable with.
The main question on most investors’ minds is why Jim Coyle chose to leave SYME instead of relinquishing his other board positions to focus on SYME’s work? Of course, we will never know for sure, but this is not the main question.
SYME told investors that Coyle decided to resign given the significant workload that would have fallen on his shoulders once the White Label and Inventory Monetisation initiatives transactions were completed.
Meanwhile, SYME investors are waiting for any signs of positive progress from the company. One of its strategies includes performing a reverse stock split that would immediately raise its share price, attracting new investors.
At this time, I believe the company has no option but to do a reverse split as its shares are trading at a low price, which is not attractive to large institutions or professional investors who have a limit on the value of the shares they buy.
Alessandro Zamboni, Supply@Me Capital’s CEO, said: “I am truly grateful to Jim for his support and counsel. While his tenure with us has been short, his impact has been immense. The level of commitment he has given to the role far exceeded our expectations, and he leaves our business in a stronger position than he found it. We are very sorry that demands on Jim’s highly valuable time prevent him from being able to provide the level of support required for the next phase of our growth. On behalf of the Board, I would like to thank him for his tremendous service to Supply@ME. I wish Jim all the best for the future.”
James Coyle said: “It is with deep regret that I have decided to step down from my role at Supply@ME. Having worked closely with the extremely dedicated team, I wish the business every success in the years to come.”
*This is not investment advice. Always do your due diligence before making investment decisions.
SYME share price.
SYME share price plunged 30% to trade at 0.065p, falling from Thursday’s closing price of 0.94p.